Building products distributor BlueLinx Holdings completed the sale of its former distribution facility in New Orleans, La., for $1.4 million, according to a news release from the company.
Proceeds from the sale will be used to repay debt, according to BlueLinx. Despite the sale, the distributor “remains committed” to the New Orleans market and will continue to serve the area from its Gulfport, Miss., distribution center.
The sale is the distributor’s third of a former distribution center in 2019. BlueLinx sold distribution facilities in Minneapolis, Minn., and Des Moines, Iowa, in June for $12 million. Proceeds from those sales were also used to pay down company debt.
Marietta, Ga.-based BlueLinx also has completed two sale-leasebacks in 2019, one for its distribution facility in Yulee, Fla., in June and one for its University Park, Ill., facility in May. BlueLinx generated $45 million from the two sale-leaseback deals, with net proceeds from both deals also used to help pay debt under the company’s term loan. BlueLinx amended its term loan facility in March, which enables the company to monetize up to $50 million in sales-leasebacks in 2019 and about $25 million in sales of overlap market properties to pay down debts.
BlueLinx has a distribution footprint serving 50 states and the company distributes its range of structural and specialty products to approximately 15,000 customers across the U.S.
